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Grant

Federal Funding for Efficient Buildings – Climate-Friendly New Construction (KFN) – Municipalities

If you, as a municipality, want to newly construct or acquire for the first time a climate-friendly residential or non-residential building, you may be eligible for funding under certain conditions.

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Grant criteria

Application Deadline: Ongoing
Application level: Complex
Funding amount: Residential buildings: up to EUR 15,000 per housing unit; Non-residential buildings: up to EUR 15 million per project
Funding rate: 5% - 10%

Funding objective

The Federal Ministry for Housing, Urban Development and Building (BMWSB) supports measures by municipalities for sustainable construction of residential and non-residential buildings in Germany. Funding is provided not only for new construction and first acquisition but also for specialist planning services, construction supervision, and sustainability certification to enhance energy efficiency and environmental standards.

Eligible expenses

  • Building costs
  • Costs for specialist planning and construction supervision
  • Own contributions

Non-eligible expenses

  • Acquisition of land
  • Debt restructuring
  • Follow-up financing
  • Compensated asset transfers
  • Projects excluded by the KfW Banking Group

Eligible to apply

  • Public Institutions

Funding requirements

  • Eligible to apply are municipal authorities, legally dependent municipal enterprises, municipal associations, and special-purpose associations
  • The initial acquisition must take place within 12 months after the building acceptance
  • The project must be carried out in Germany and comply with environmental and social legal requirements
  • The funded building must be used for its intended purpose for at least 10 years
  • Involvement of an energy efficiency expert from the corresponding expert list is required
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Documents required for application

  1. Application form
  2. Proof of eligible costs
  3. Energy efficiency expert report
  4. Sustainability certificate (for QNG)

Evaluation criteria

  • Sustainability certificate (QNG)
  • Compliance with technical minimum requirements
  • Proof of energy efficiency

Description

The funding program “Federal Funding for Efficient Buildings – Climate-Friendly New Construction (KFN) – Municipalities” supports public institutions and municipal authorities throughout Germany in the realization of climate-friendly new buildings. The focus is on both residential and non-residential buildings that meet the high requirements for energy efficiency, renewable energies, and climate protection. The Federal Ministry for Housing, Urban Development and Building (BMWSB) promotes sustainable new construction, initial acquisition, as well as accompanying specialist planning services to reduce the ecological footprint of municipal construction projects and to raise environmental standards.

Eligible for funding are construction projects that stand out through an efficient planning and implementation process. This includes not only the pure construction costs but also expenses for specialist planning, construction supervision, and in-house services. Essential requirements include, among others, the execution of the project in Germany, compliance with environmental and social legal requirements, and a minimum usage period of ten years. The involvement of experts in the field of energy efficiency is also indispensable, as they support the planning and verification of the technical minimum requirements. For construction projects that additionally meet the criteria of the Sustainable Building Quality Seal (QNG), sustainability consultants and certified bodies must also be integrated into the process.

With a grant rate of 5 to 10 percent and funding amounts of up to 15,000 euros per residential unit or up to 15 million euros per non-residential building, the program represents an important component for climate-friendly construction. It aims to make a long-term contribution to climate protection through the use of modern and sustainable construction techniques, reduced CO2 emissions, and improved energy efficiency. Thus, not only is the ecological quality standard in the municipal construction sector promoted, but the integration of innovative planning approaches is also advanced. Municipal decision-makers can sustainably implement their construction projects through this tailored funding and thereby make a significant contribution to achieving national climate goals.

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